Thursday, November 19, 2015

Take Your Pick: Living Wills Or Living Trusts (part 2 of 2)

On the other hand, a living trust – also known as inter vivos trust – is a legally binding document that is drawn up for the purpose of controlling ownership to a person's assets in his or her entire lifetime, and for allocating those properties after death.

The creator or the grantor may also appoint a trustee who will implement the terms indicated in the living trust in case he or she becomes incapacitated or unwilling to perform the duty.

In comparison to a will, the grantor does not necessarily have to pass away for the living trust to take effect. As the name implies, this legal document is effective during the creator's lifetime.

A living trust however is only recommended for people who own a considerable amount of assets and finances. In other words, the necessity to create one is largely dependent on your circumstances, financially speaking.

If still haven’t decided which type of legal to choose, you might as well pick both for as long as the two are applicable to your needs and circumstances.

The obvious similarity is in the financial aspect. Living wills make it possible for you to save your family from all the trouble of paying for enormous hospital bills, provided that your medical condition appears to be beyond any possibility of recovery. On the other hand, living trusts lay emphasis on the need to properly manage your assets according to your preferences.

On the whole, living wills or living trusts make it possible for you to put things in order while you still can. Also, both legal documents allow you to prepare for the inevitable and the unknown.